Changes in Agriculture and Food Production in NAE Since 1945 | 67

the compliance (and therefore the quality) of end products and services; rather, it certifies that consistent business pro­cesses are being applied.5 Although the standards originated in manufacturing, they are now employed across a wide range of other types of organizations, including colleges and universities. A "product," in ISO vocabulary, can mean a physical object, services, or software. ISO 9000 and ISO 14000 standards are implemented by 760,900 organiza­tions in 154 countries (Table 2-12) (ISO, 2005).
     ISO  22000:2005  Food Safety Management Systems Standard is an international standard that defines the re­quirements of a food safety management system covering all organizations in the food chain from "farm to fork," including catering and packaging companies. This standard has been developed to harmonize the growing number of national standards for food safety management. The stan­dard combines generally recognized key elements to ensure food safety along the food chain including interactive com­munication; system management; control of food safety hazards through pre-requisite programs and HACCP plans; and continual improvement and updating of the manage­ment system.

Niche markets. Product differentiation has provided special niches in food markets. These markets have been developed by granting protected trade marks/names so that consumers can easily distinguish the special flavor or quality of niche products among similar commodities. These schemes are increasing important for rural development across Europe. Their implementation in the US is a relatively new phenom­enon with such regions now being delineated ecologically rather than politically, culturally or economically.

The market for organic products
In 2004, the market value of organic products worldwide reached 23.5 billion EUR (27.8 billion USD), with a market growth of about 9%. The leading regions were Europe, with a share of 49% and North America with a share of 47%. The three largest country markets were USA ($12.2 billion); Germany ($4.2 billion) and the UK ($1.9 billion) (Willer and Yussefi, 2006). In 2005, the global market for organic products reached a value of 25.5 billion Euros, with the vast majority of products being consumed in North America and Europe. For 2006, the value of global markets is estimated to be at more than 30 billion Euros.
     The distribution of the European organic market con­tinues to broaden and deepen as more consumers are at­tracted in more sectors and in more countries. In Germany a growing number of conventional supermarkets are offering organic products and the number of organic supermarkets continues to increase with 40 new organic supermarkets opening in 2004 alone. The UK market continues to show healthy growth, with much of the growth occurring in non-supermarket channels like organic food shops, box schemes and farmers' markets. A growing number of catering and food service companies are also offering organic food. The

5 Certification body is URS Certification Ltd in India and Europe which accredited by NABCB and UKAS (http://www .ursindia.com)

 

Table 2-12. Top ten countries for ISO 14001 certificates.

Country

Certificates

Japan

13,416

UK

5,460

China

5,064

Spain

4,860

Germany

4,144

USA

3,553

Sweden

3,404

Italy

3,006

France

2,344

Korea, Rep. of

1,495

Source: ISO, 2003.
Italian and French markets are the next most important in Europe, however growth rates have slowed in these coun­tries. A smaller market for organic food is found in CEE countries with the region comprising less than 3% of Eu­ropean revenues. Demand for organic products is growing through all CEE countries including Russia, particularly in metropolitan areas.
     The data for the European market is fragmented and reliable detailed country comparisons are difficult to make because of the differences in data collection methods. How­ever, FiBL have estimated the data which contribute to the profile of the European market reflected in the following tables for 2003 in which year the European market for or­ganic food and beverages amounted to €11 billion (Table 2-13).
     The North American market for organic products has reported the highest growth worldwide. Organic food and drink sales in the US were estimated to have totaled ap­proximately 14.5 billion USD in 2005. With healthy growth rates continuing, the region is expected to overtake Europe and represent most global revenues in 2006. The driver for growth is the increase in marketing and distribution chan­nels, with traditional, dedicated organic retailers like Whole Food Market and Wild Oats being joined by mainstream food multiples. Mainstream grocery retailers now comprise most organic food sales and the range of products is ex­panding in supermarkets such as Safeway, Albertson's, Wal-Mart and Kroger. The Canadian market is also reporting high market growth.
     Demand in North America has become so high that lo­cal producers are having difficulty in matching supply and organic products are being imported from across the world e.g., organic seeds and grains are coming in from Europe and Asia; organic herbs and spices from Latin America and Asia; organic beef is imported from Australia and Latin America. Large food companies dominate almost every sector with companies such as Dean Food and General Mills active in the market. North America has organic food companies such as Hain Celestial, Sun Opta, Whole Food Market and Planet Organic listed on the stock exchange.